Glock trying to force Canadian prices up?

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As for us here in Canada... We really are not in a position to bargain. Glock sales could completely dry up here and I doubt Glock inc. would suffer at all.

Dry up? I bet there's a line-up of US dealers that would be willing to sell $800 Glocks......

What ever percentage of sales Canada makes for glock I doubt they just want to lose that business.
 
Stevo..let us take your example, gun that sells for 500 in US and 800 in Canada.

500US @ 1.04 exchange = 520.00
GST @ 1.06 = 31.20
Brokerage/Customs = 75.00(on a good day)
shipping = 55.00 (if lucky)
time to register in Canada= 75.00

A Total of $756.20

this doesnt count the rent, annual license fees with CFO, overhead expenses

So now you tell me if you can run a business on $43.80 is this what you call a S***t load of cash.

Like ponts said, why would a dealer be paying retail US prices? You're also assuming customs fees for individual firearms, not a single order with multiple guns and one fee. Your shipping amount doesn't seem to take combined shipping on multi-gun orders into account either.

For a single gun from a low-volume importer, your numbers make some sense. Economies of scale for any dealer/importer selling larger numbers would lead to much lower prices.

If Questar can sell them for $650, your numbers can not be correct. I'm sure Mark's not selling at a loss or break-even just to be a nice guy.
 
PO vs Questar

I have purchased many(10 plus) glocks from PO and they treated me great!
That said I have not bought another gun from them since Questar came into the business and brought down the prices of Glocks. I personally love glocks and have owned every model available to canadians. I truly believe the distributor is gouging us. Glock sells at a price that is very low and PO has been able to demand a premium for years. it is a shame that the prices will go up and for me it is good. I will be trying SW,steyr and other models now. i will not pay premium for glocks, Id rather import through questar than be gouged by PO. If you check online u can still buy glocks near the 400us dollar mark in the states. I will continue to support Mark as he has amazing service and has saved me alot of money in my terrible glock habit.
 
Letter to Glock

Mr. Jones:

I just purchased my first Glock pistol (a Glock 20 with, for the record, a Glock factory barrel) from Questar International last month and had a second Glock on order. I understand that Glock has taken actions to prevent its U.S. distributors from providing Canadian Glock customers with Glock pistols via Questar International. Notwithstanding your false charges of illegal behavior on the part of Questar International, I can only presume that Glock’s actions are in order to protect the inflated prices charged by Glock’s Canadian distributors (and they are, given what U.S. firearms consumers are paying for Glock pistols, egregiously inflated).

I am not interested in a specious explanation of the economics of firearms importation into Canada. Fundamentally if Questar International can legally provide Canadian firearms consumers with pistols at the prices that it does then it is economical for it to do so (it is after all a for-profit operation and not a firearms charity). If your Canadian dealers cannot do the same then they are either incompetent or profiteering through market restrictions put in place by Glock (I suggest the latter).

Of note these same Canadian dealers sell to Canadian law enforcement agencies (LEA). I think it would be most interesting to get both the federal and provincial auditors general to review what prices Canadian LEAs are paying for Glock pistols versus what their U.S. LEA counterparts are paying – especially since the Canadian dollar is on par with the U.S. dollar. It would be unfortunate to find that Glock’s punitive policies not only affect private Canadian firearms consumers but Canadian taxpayers as well.

Glock may wish to revise its policies forthwith unless it has decided to reduce its Canadian Glock sales.
 
Of note these same Canadian dealers sell to Canadian law enforcement agencies (LEA). I think it would be most interesting to get both the federal and provincial auditors general to review what prices Canadian LEAs are paying for Glock pistols versus what their U.S. LEA counterparts are paying


$485

'Not unreasonable... and certainly not all that interesting.
 
Sorry 667 the word "versus" implies a comparison of two numbers. You have only provided one. Perhaps this is because you disregarded the last part of the sentence which reads, "...versus what their U.S. LEA counterparts are paying."

A difference of $100 between Canada and U.S. prices means that the Toronto Police Force (5,700 officers) would have spent $570K more for Glock pistols than would a U.S. police force of equal size. This is putting aside parts and armorer service costs.

It may not be much but it is your and my tax dollars and it does add up.
 
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All I'm saying is $485 is one price I know one ontario police service is paying for their 200 new G22's and G27's I have no idea what Americans pay... or Mexicans.
Who knows... another service may pay more... or less. 'Depends on how well they can negotiate.

This kind of discussion could go on about any product/service... What are they paying for their cars, clothing, office supplies...?:D
 
All I'm saying is $485 is one price I know one ontario police service is paying for their 200 new G22's and G27's I have no idea what Americans pay... or Mexicans.
Who knows... another service may pay more... or less. 'Depends on how well they can negotiate.

This kind of discussion could go on about any product/service... What are they paying for their cars, clothing, office supplies...?:D

If memory serves the US price for LEO's buying a standard G17 or G22 is @ $385.00 while the "Agency" price is @ $350.00 (the difference is the 10% FET - Federal Excise Tax charged on handguns manufacturered/sold in the US but which Agencies are exempt from).

The US Dealer price for a Glock 17/Glock 22 is $440.00. Glock does NOT sell guns directly to retail dealers in the US but rather they established a number of Commercial Distributors (for distribution to retail dealers) and LE Distributor/Dealers who specifically buy and sell at special (lower) pricing and who sell to LE Agencies and LEO's (Law Enforcement Officers).

There are a number of US Distributors so there is competition among the distributors for sales and thus the dealer cost does vary slightly.

If you go on GunBroker.com you'll see literally 100's of dealers selling their guns for $489.00 (or less) at retail. Add to that the 3% for credit card payments and the shipping costs.

Mark
 
guns bought from a distributor in the states still have the 10%fet when they are for export?

Yes... the FET is charged by the Manufacturer or the Imported and paid to the US government (quarterly if memory serves correctly). Even a gunsmith who assembles a firearm from components (if they do more than a certain number per year) must collect the FET and remit it. The FET is 10% on handguns and 11% on long guns... it's also collected on ammunition.

The money is used by the US government specifically to fund hunting and firearms programs... actually a pretty good system as the money collected goes back to benefit the people (end-users) who are paying it (in the US).

Mark
 
Glock responds

Good morning to you both,
I appreciate your comments and concerns. Attached you will find a Retail price sheet for the US market. The handgun market in Canada is equal to about one percent of the volume in the US. Therefore the prices will differ due to the volume and supply and demand. The recent Questar events were brought on by numerous dealers in Canada. We received information as to the importation of GLOCK pistols with aftermarket barrels. These barrels may affect the operation and safety of GLOCK pistols.

You were referring to GLOCK pistols being used by Canadian Law Enforcement as well. Again, GLOCK has made huge strides in providing GLOCK pistols and accessories to the individuals that protect and serve. We have 2 LE distributors in Canada which do most if not all LE business in Canada. To my knowledge there have not been any complaints on the price or the availability of GLOCK products to the LE market. In fact LE sales have increased do to the availability and we are proud of our Canadian Distributors. Also, any commercial dealer in Canada that is selling to the LE officers would have to sell at a higher price due to the difference in pricing for the LE pistol(s). This is the same way we conduct business in the US. It is only fair that the LE officers and agencies get a significant discount on GLOCK pistols and accessories.

I hope that you find this information useful and hope that you will continue to support GLOCK, Inc.

Best regards,

Corey W. Jones
Commercial Sales Manager
770-319-4771
678-303-1061 fax
 
I respond to Glock

Corey:

Thank-you for your prompt response.

I cannot agree with your assessment of pricing differential associated with “volume, supply and demand” since by its actions it is Glock that is restricting supply (via its distribution policies) in order to increase prices. My professional area of practice is environmental economics and policy so the fundamental principles of economics and competition policy are not unknown to me.

I for my part purchased my Glock with a factory barrel. Thousands of shooters in Canada and the U.S. replace their factory barrels with aftermarket barrels and this is a common practice. The assertion that this is somehow a safety issue is a red herring (though it may be a legitimate warranty issue).

Given that the on-line forum we populate has a number of senior LEOs participating I am sure that any discrepancy in pricing will be brought to the prompt attention of the individuals involved in procurement at those various LEAs.

I remain supportive of Glock based only on the quality of its products but not with regard to its restrictive trade practices.

Again, thank-you for your prompt and courteous response.
 
Stevo..let us take your example, gun that sells for 500 in US and 800 in Canada.

500US @ 1.04 exchange = 520.00
GST @ 1.06 = 31.20
Brokerage/Customs = 75.00(on a good day)
shipping = 55.00 (if lucky)
time to register in Canada= 75.00

A Total of $756.20

this doesnt count the rent, annual license fees with CFO, overhead expenses

So now you tell me if you can run a business on $43.80 is this what you call a S***t load of cash.

That's some pretty suspect math...

500US @ 1.04 exchange = 520.00
(Obviously ok)
GST @ 1.06 = 31.20
(You get the GST back if you sell and collect again)
Brokerage/Customs = 75.00(on a good day)
Per gun? Yeah right... maybe divide by 10 on that if you're bringing in a reasonable quantity.)
shipping = 55.00 (if lucky)
(LOL! Probably divide by 10 again for quantity)
time to register in Canada= 75.00
(What are you paying yourself? 150 an hour?)

Looks like a 560 dollar gun or so to me...
 
The handgun market in Canada is equal to about one percent of the volume in the US. Therefore the prices will differ due to the volume and supply and demand.

Perhaps if handguns were priced fairly according to US prices the Canadian handgun market would represent it's population. Jack up the US prices 50% and see what happens to the market........
 
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